Local News

General Manager Of JARCO Sees Bright Future As A Result of Fracking

By Bruce Kropp, WJBD News

The General Manager of JARCO, Incorporated is looking at tremendous growth of the company because of the new fracking law that is expected to greatly increase oil and natural gas production in the Southern part of the state.

Bill Glawe told the Salem Chamber of Commerce monthly luncheon he expects propane to play a major role in supplying clean energy for the fracking process to pull the oil and gas from the shale formations. He notes that's big news for the company that makes trucks and trailers for the propane industry. "We could be building so many trailers in the next couple of years delivering propane to energy fields, not to deliver propane for people to burn, but propane to find more energy," said Glawe.

Glawe says the increased business will also mean more employment. "You have your seasons. Well these trailers that I've been talking about they have no season. If you're exploring for oil and natural gas, that's a full time full year job. That would take us out of cyclical business where he have temporary hiring and temporary layoffs and things like that. I could see the trailers becoming 80 or 90 percent of our business in two years," said Glawe.

Glawe says they began the manufacture of the trailers after being acquired in 2010 by Polar, the nations largest manufacturer of tanks and trailers in North America. He reports increased deliveries in the propane business is already resulting in JARCO's employment base being increased from 25 to 30 employees in the next few weeks. Glawe says that number could grow to 60 by this time next year with the potential new business from fracking.

He notes the company already has established a second location in Salem. In addition to their original site on Route 37 South, they have now acquired a facility on North Hotze Road where the trailers are being manufactured. JARCO is currently looking for another location with the availability of bays and cranes. He'll be meeting Friday with Salem Economic Development Director Jeannie Gustafson to discuss the possibility of constructing a new building next to Americana in the Salem Industrial Park.

Glawe notes Jarco already has forged an alliance with Americana that has allowed them to use Americana's powder coating business to become the only propane truck builder able to provide powder coated vehicles. Glawe says that's a huge advantage because powder coating can extend the normal warranty for paint from two years to ten years.

He says the company's future is definitely in Salem, noting they couldn't pick up and move and expect to replace the expertise of their staff. Glawe says Jarco will make 150 propane delivery vehicles and 30 trailers this years, with sales of $10 to $12-million dollars. The company started in Salem in 1967.